Federal Acquisition Regulation
Cost-sharing contracts
FAR 16.303
(a) Description. A cost-sharing contract is a cost-reimbursement contract in which the contractor receives no fee and is reimbursed only for an agreed-upon portion of its allowable costs. (b) Application . A cost-sharing contract may be used when the contractor agrees to absorb a portion of the costs, in the expectation of substantial compensating benefits. (c) Limitations . See 16.301-3 .
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